subject: Getting Out of Debt - Why Pay Back Credit Card Debt When You Can Get Rid of 50% First? [print this page] Credit card loans are unsecured loans and carry a high rate of interest compared to secured loans. A common consumer is usually heavily dependent on loans for daily living. At the same time due to the current recession unemployment and salary cuts are rampant. Due to their financial situation many debtors get into the trap of credit card debt and find it impossible to get out. The various debts accumulated by a common debtor can take about 25 years to repay. But now it is possible to bring down the credit card bill amount to almost 50% of the original amount payable. This can be achieved through various settlement programs available in the market. A debt settlement will definitely affect your credit scores, but you can build them up by healthy credit practices within 3-4 years.
The best way to reduce credit card debt is to enroll in a debt settlement program offered by an established and reputed settlement company. By doing this you will be free of having to deal with the creditors. The debt settlement company will negotiate with the different credit card companies and bring down the amount payable to 70% of the original amount payable. They will also negotiate with the creditors to waive off the penalty charges. After this they will consolidate the several high interest credit card loans with a single low interest one.
The amount payable can be further reduced by converting the unsecured credit card loans into secured ones. This combination of procedures will bring down the total amount payable to 50% of the original loan amount. This amount can then be paid off as a lump sum or in equated monthly installments. The installments are usually calculated in such a way that you will become debt free in 48 months at the most. The entire procedure of settlement is completely legal. Moreover, once the loan has been repaid the creditors will provide you with a letter of full and final settlement. In this way you will become debt free without too much of strain on your finances and an easily repairable damage to your credit scores.
For the millions of Americans who are at least $10 k in unsecured debt, it would be financially prudent to consider the debt settlement option. Creditors are very worried about collecting their debts and legitimate debt settlement companies know exactly what methods to use to get your creditors to agree to eliminate a certain percentage of your unsecured debt.
Getting Out of Debt - Why Pay Back Credit Card Debt When You Can Get Rid of 50% First?
